WASHINGTON — The US government on 24 July announced a coordinated effort by its State, Justice and Treasury Departments to curb North Korea’s illegal revenue schemes. The State Department’s Transnational Organized Crime Rewards Programme is offering up to US$15 million for information leading to the arrest or conviction of North Korean nationals Sim Hyon-sop and six alleged accomplices involved in these schemes.
North Korea’s illicit funding operations — which include cryptocurrency theft, fake IT work, counterfeit goods trafficking and oil smuggling — are aimed at US companies and citizens to raise money for the regime’s banned nuclear and missile programmes. Officials noted that many North Korean missiles have been transferred to Russia and used in strikes on Ukrainian territory, including around Kyiv. The US said these programmes violate both UN and US sanctions.
US authorities said the actions demonstrate Washington’s commitment to protect American businesses, the financial system and citizens from Pyongyang’s threats. “The United States will not stand idly by while North Korea profits from criminal activity to fund its destabilising actions,” one statement said.
In a related case, Sim Hyon-sop and six others have been charged with a scheme to buy and sell North Korean tobacco for US dollars. The State Department has offered rewards of up to $7 million for Sim Hyon-sop and $3 million each for Myong Chol-min and Kim Se-un. It also offers $500,000 for each of Kim Yong-bok, Kim Chol-min (aka “Jack”), Ri Tong-min (aka “Elvis”) and Ri Won-ho.
US officials also say Sim Hyon-sop and some of his associates have run fraudulent IT-worker schemes. Pyongyang is known to send thousands of IT specialists overseas — often through Russia and China — to carry out online fraud and funnel money back to North Korea. On Thursday, the Treasury Department blacklisted Korea Sobaeksu Trading Company (a firm that has sent workers to Vietnam) and three North Koreans — Kim Se-un, Myong Chol-min and Jo Kyong-hun — for roles in these revenue-generation schemes.
Observers note that North Korea’s overseas networks give the regime access to technology and illegal finance channels, which help fund state arms bodies like its Munitions Industry Department and Ministry of Atomic Energy and Industry (both under international sanctions). The State Department said it is engaging countries that host North Korean IT workers to try to protect Americans from falling victim to these schemes.
Meanwhile, American Christina Marie Chapman is due to be sentenced in Washington, DC, on 24 July for her role in a North Korean IT fraud scheme. She pleaded guilty to helping organise a scam that defrauded more than 300 US firms, including many Fortune 500 companies. Prosecutors say North Korean IT workers often take high-paying remote jobs at US firms and send the money home to fund the regime’s illicit weapons programmes.
Officials said the reward offers are authorised under the TOCRP programme, which helps law enforcement fight organised crime across borders. They urged anyone with information to tip the FBI by phone or WhatsApp at +1-480-695-1388. People outside the US can contact the nearest American embassy or consulate, while those in the United States can reach out to their local FBI field office. All tips will be kept confidential, although by law, government employees cannot claim rewards for information provided in the course of their duties.
Separately, the State Department’s Rewards for Justice programme already offers up to $5 million for information that disrupts North Korea’s financial networks. This standing reward covers tips on IT worker fraud schemes, money laundering, cyber activity and other illicit methods used to support Pyongyang’s weapons development. More details on these rewards are available on the State Department’s website.
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